The draft regulations by the Central Bank of Kenya, requiring lenders to give borrowers a 30-day notice before forwarding their names for listing with the credit reference bureaus (CRBs) could not have come at a better time. These new rules should be endorsed and implemented as soon as possible to save borrowers, some of whom have been blacklisted for defaulting on very little amounts or on the basis of miscommunication.
The draft CRB regulations 2019 prohibit banks and other lending institutions from submitting the names of defaulters for listing without their knowledge as is the case currently. Borrowers will also have the right to know the reason their names are being presented for listing.
